Supreme is a major supermarket chain in Mauritius, with one central distribution depot. It is sited at the Upper Plaines Wilhems and handles all the normal range of products such as, food, drink, and grocery products. The average stock turn across the whole 1,500 lines that are stocked, is ten days.

Supreme holds good working relationships with all its major suppliers. Particular consideration is on 200 fast moving lines through regular contact and real time sales feedback from Supreme. The 200 fast moving lines account for 60% of the supermarket turnover.

They have recently concluded negotiations to buy out two smaller competitors. This will allow them to rationalise their store outlets and distribution activities. The overall product range to be handled at the central distribution depot will not change. Supreme now has an opportunity to redesign their distribution operations. The depot will receive products from over 70 suppliers. They supply in box quantities, which are stripped onto pallets and delivered by supplier arranged transport.

The depot will continue to deliver to 8 of its Mauritius based supermarkets. Product is supplied in box quantities, which are palletted. These are loaded onto vehicles at the depot and are then transported at the store. An expansion plan is to extend distribution to export to regional markets with a 300-line range of own label Supreme products. The export markets are in Rodrigues, Reunion, Madagascar, and Seychelles. These products are currently supplied to the local market and have developed their own brand awareness.

Required

a) Describe how you would design the internal operations of the depot. Include details of the storage and handling equipment.

b) Identify and explain the major factors to be considered for the transport and shipping activities, for both the Mauritius and Regional Markets.

c) Detail the key performance indicators you believe should be used by Supreme to assess their distribution performance.